Fund Strategies and Market Commentaries
As of February 24, 2015

Midas Magic is focusing primarily on large companies, with a broad orientation towards conservatively priced value stocks and aggressively priced growth issues, in seeking its investment objective of capital appreciation.  The Fund’s portfolio companies typically enjoy global operations with attractive returns, such as two year-to-date top performing holdings: Daimler AG (manufacturer of Mercedes-Benz, one of the top luxury automobile brands in the world, and Freightliner, a leading U.S. truck brand) and Coach Inc (a maker of luxury brands with approximately 60% of sales from North America, with the balance from Japan, China, the internet, and start-up operations in Europe).  The Fund’s holding of Viacom Inc Class B (a global media company) has underperformed year-to-date after failing to meet investor expectations on some financial measures.  The Fund’s overall portfolio, as compared with the S&P 500, has a heavy weighting towards financial services, and less to economically sensitive industries such as energy and defensive consumer products companies, in anticipation of gradually improving economic prospects.  The Fund currently is positioned speculatively with leverage in seeking to enhance returns for Fund shareholders.

Midas Fund’s  core strategy is to seek investments in higher quality senior and intermediate producers of precious metals and other natural resources.  Outstanding year-to-date performers in the Fund’s portfolio have recently included senior miners Newmont Mining Corp. and AngloGold Ashanti Ltd ADRs, while shares of intermediate gold producer Eldorado Gold Corp. stumbled after announcing reduced production estimates for 2015.  Currently holding some reserves in cash, Midas Fund may seek to re-position its portfolio in view of recent positive gold market action by adding to some current stockholding and introducing new names into the portfolio.  Companies the Fund anticipates adding to its portfolio will normally be those with promising exploration potential, expanding production profiles, increasing cash flow, and/or other special growth features.

Midas Perpetual Portfolio’s  investment objective is to preserve and increase the purchasing power value of its shares over the long term.  The Fund uses a core “asset allocation” strategy, to the extent consistent with tax planning and lower levels of portfolio turnover.  Accordingly, the Fund seeks to hold a target percentage of its total assets in each of the following categories: gold, silver, Swiss franc assets, hard asset securities, and large capitalization growth stocks.  Moreover, the Fund may from time to time, and has recently, used leverage to increase its allocation to large capitalization growth stocks. Among this allocation to growth, Volkswagen AG ADR has performed well.  In the hard asset allocation, BHP Billiton Ltd ADR has outperformed, although First Quantum Minerals Ltd has hindered recent returns.  Generally, the Fund has benefited moderately from its allocations to gold and silver, as well as from Swiss franc assets, due to the volatile but positive price movements in those sectors.



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